By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A JAPANESE firm's offer to conduct pre-export inspections on used vehicles destined for the Bahamas would likely result in increased consumer prices if accepted.
A copy of the proposal by EAA Company Ltd, which has been seen by Tribune Business, suggests that the inspections would be "self-funding" and paid for by vehicle exporters - not the Bahamian government.
"The exporter of the vehicle is charged directly by EAA for the costs of the inspection," the proposal says. "This method means the Bahamas Government is not required to divert any financial resources in support of the programme."
But placing the financial burden on used car exporters will almost inevitably be passed on to Bahamian purchasers, resulting in increased costs and auto prices in that segment - although it is unclear how much any increase will be.
Proponents of pre-export inspections for used vehicles imported to the Bahamas will argue that they are worth it, and necessary, to protect the welfare of Bahamian consumers and the environment, as well as the interests of local dealers and other stakeholders - including the Public Treasury.
They say that, at present, the Bahamas has nothing to certify the roadworthiness of used vehicle imports, creating potential health and safety problems for consumers, and a potential environmental hazard from the wrecks dumped on New Providence roadside. Buyers in such instances do not receive 'value for money', and the 'saturated' market created by the influx of used auto imports also depresses sales/prices and government revenue. However, many Bahamians have interpreted the joint public-private sector trip to Japan this weekend, which will assess EAA's facilities and offer, as akin to a 'conspiracy' between the Government, new auto dealers and banks to price vehicles out of reach of 'ordinary' Bahamians.
This has erupted into a lively debate on The Tribune's website in response to this newspaper's revelation of the Japan trip. One reader, 'happyfly', said: "Japanese imports are popular because there has been a long history of credible imports from that market place, which is more than anyone can say about the local vehicle market place.
"[This] is just another example of these small communist-minded cartel members trying to prop up their monopolies without addressing the reason why people think it's a better deal to buy a car from a stranger in Japan and ship it half way around the world rather than from a dealer down the street from them."
Another, called 'DreamerX', said simply: "They are doing this because the Japanese imports direct by consumers is hurting the big local car dealers." And 'avidreader' added: "If they can cut off this line of supply, or at the very least make it more difficult to import used vehicles from Japan, they will be able to say 'mission accomplished'."
These views received push back from, among others, Rick Lowe, the Bahamas Motor Dealers Association's (BMDA) secretary, who posted: "As a member of the Bahamas Motor Dealers Association I am not aware of any relationship with Government that works to our advantage. They are, in my view, a detriment. In fact, as a business we are very highly taxed and regulated.
"My personal position is if people want to buy Japanese vehicles online it is their money. I certainly oppose people operating a used car business [for resale] without being subject to the same laws, taxes and regulations the BMDA members face. Just as a matter of information, on a new vehicle that lists at $46,982, the Government receives approximately $17,488.75 in taxes ($13,797.20 duty; $3,104.65 VAT; and $586.90 Business License Tax). Maybe this is why the Government would want people to buy new cars."
He later clarified: "I absolutely agree that not everyone can afford a new car, and I have no issue with individuals spending their money how they wish. My issue is with unlicensed used car businesses selling by the road side. Can we display our cars on the side of the highway with a cell to call to purchase?"
Dr Renae Ferguson-Bufford, the Bahamas Bureau of Standards and Quality's (BBSQ) director, and who is leading the delegation, said it would report to Cabinet on its return whether the Government should take up the EAA Company Ltd offer.
"We are going to EAA Company Ltd in Japan to observe the inspection sites, and then hopefully report to Cabinet our findings; yeah or nay, etc," she said.
"We trust that this will be a positive step on the way forward in terms of quality inspection services of import vehicles for the Bahamas and, by way of extension, also for the CARICOM countries."
Describing its offer as a 'public-private partnership' with the Bahamas, EAA Company's proposal said: "The used motor vehicle pathway from Japan to the Bahamas provides the required vehicles in an achievable price range.
"These imports, however, represent a risk in terms of road safety, environmental concerns and difficulties in reuse and recycling. The associated economic effects of all these combined are substantial."
EAA Company said it already provided pre-inspection services to similar countries, and could provide such services in all countries that export vehicles to the Bahamas - even outside Japan - if the Government wanted.
It said its inspections ensure "that the vehicles imported are safe, and of good quality" and "that they are a worthy investment rather than a liability, and not the instrument of fraud for unsuspecting buyers".
Arguing that its inspections "stop the problem at source", EAA Company added: "This is operated in a private-public partnership, where EAA supplies the facilities and staffing in Japan, working under the Bahamas government mandate enforcing the inspection process.
"Importantly, this is a self-funding programme, where the exporters pay for the service. EAA are also interested in investing back into the Bahamas, with the development of local training/inspection programmes."
Dr Ferguson-Bufford said Jamaica's experience suggested that inspecting vehicles 'upon arrival' in a country was not the best method, given that they came in "sight unseen".
She added that Jamaica had encountered "problems with model year verification", with vehicles described as several years younger than they actually are. The "rollback" of mileage odometers was another common problem, and pre-inspections are also seen as vital in uncovering "radioactive and microbial contamination, and a history of damage/repairs".
Comments
BahamasForBahamians 6 years, 10 months ago
There was a radioactive explosion in Fukushima in 2011 under a then FNM government. They saw no need to have pre-export inspections put in place.
Fastfoward to 2016 - Japanese Exports are/were coming to the Bahamas at record levels finally providing relief from the monopoly UBP/FNM autotraders had on the country through Sanpin, The Automall, Executive Motors and Nassau Motors.
Then FNM MCM Member Fred Albury and the Bahamas Motor Dealers Assocation (Fred is its president and his brother Ben is also on the executive) cry about not making sales quotas on their ridiculously priced vehicles.
Then Poof.
Hubert Minnis upon winning the government sends his wife and other cronies down to Japan to protect the FNM autotraders interests.
What to expect:
After they've strong armed the Japanese and mandate unnecessary pre-export inspections - they would've effectively out-priced the Asian competitor from participating in this market - and poof the FNM / UBP (Sanpin, Auto-Mall , Executive Motors, Nassau Motors, TyreFlex Star Motors) can then regain its monopoly.
Hooray - Its the Peoples Time Folks - prepare to go back to Brent Symonette, I mean CommonWealth Bank - for 50,000 car loans guys.
empathy 6 years, 10 months ago
What may seem like a ‘good deal’ is not always so and oftentimes results in substantial financial losses to the very folks (“the poor”) who can ill afford it. Government is supposed to protect the people, sometimes from themselves! Government also is supposed to protect our environment and no one can argue that “used cars”, no matter how good a deal, are more likely to be short lived and end up in our already crowded landfills (and bushes etc.), so ensuring that we get the best quality used cars before they are transported to the Bahamas is a win-win, regardless of what the ‘conspiracy theorists’ shout from the top of their I’ll-informed lungs😡
Think people...think!
JohnDoe 6 years, 10 months ago
Utter nonsense!
ohdrap4 6 years, 10 months ago
Translation from Japanese:
bahama people very resilient paying extra charges.
Japanese collect inspection fee and goverment collects vat and environmental levy fee. That is great partnership. Yes?
Traslation from Japanese:
Bahama got plenty land , no? Japanese offer to train the unwashed and they give us 10,000 acre with beach.
I am aghast. I discovered , upon reading this article, that the fat of the land has no passport. Up until today i though it was only the politicians that gorged on it.
ThisIsOurs 6 years, 10 months ago
Lol very resilient in paying extra charge is right
John 6 years, 10 months ago
Remember when Bahamians bought cars in Miami and it would reach here without an engine or some other major part missing. Remember when persons bought TVs in Florida and when they opened the box for customs it had concrete blocks instead of a tv. And Miami is right there. Even though there have been worse things done to persons from other Caribbean countries and South America who shopped in Florida. Now to trust sending your money all the way across to the other side of the world and to hope something comes back. Something of value and something that resembles what you ordered. And while there have been some serious ripoffs and disappointments, the satisfaction rate among persons ordering vehicles from Japan is very high. Especially among those who purchased from companies that have proven reputations and set their own standards for exports to ensure consumers don’t ‘get no junk.’
ThisIsOurs 6 years, 10 months ago
How many ways can you tax and squeeze the small man... We're about to find out it seems. Bahamians aren't buying new cars , so that revenue is down we raised the duty on used cars already and we need more so...blame the Japanese, then add a Japanese car tax. Time to move to horse and buggy before they raise the tax on horse shoes. If we're too late we can try walking before they tax us for having a leg to stand on.
OldFort2012 6 years, 10 months ago
It's not the vehicles we should be worried about.
It's the monkeys driving them.
Socrates 6 years, 10 months ago
all kind of problems to be addressed including driving on the wrong side of the road, most vehicles having the steering wheel on the left side.. many easily solved matters, but we are a country crippled by inertia born out of a public service culture and political system characterised by massive bureaucracy. .
TheMadHatter 6 years, 10 months ago
ThisIsOurs : Begging to differ with you, i have no sympathy for them. There is in fact no such thing as the "small man" because the "small man's" "small man" is big enough to reach the cervix, and baby food ain't free - so money is not his problem.
ohdrap4 6 years, 10 months ago
basically these bureau of standards people collect a salary with nothing to do.
few months ago they determined that many gas stations pumps were shorting the public, then turned around to say there is nothing in law that can do.
reminds me of the tv ad where the they tell the man on the dentist chair that he has a cavity. Aren't you goign to fix it ? no, i am no a dentist, just a cavity monitor.
sheeprunner12 6 years, 10 months ago
The Japanese can make a car as fast as a Bahamian makes a bowl of conch salad ........ that is why their cars are so cheap (and good) ......... That is a real lesson for Bahamians to take to heart.
Franklyn 6 years, 10 months ago
why are we being ignored!!!
Bahamian Proposal To Provide Annual inspections of all motor vehicles (from Japan, US and Europe) to ensure roadworthiness during the life of the car while being used on the streets of the Bahamas ...can someone tell me why?
Our comprehensive inspection proposal which would create 300 plus jobs for Bahamians at no cost to the Government. And increase revenue in this sector by 30%
Being ignored by: 1. This News Paper (The Tribune My Former Employers) and Mr NEIL HARTNELL who don't return calls or keep meetings. 2. The Former Perry Christie Government (Glenys Hanna Martin, who kept guess from MAHA/UTSCH Germany, waiting for 4-hours only to say she could not meet with them. - 2014 3. Ross Smith - who can never give a straight answer related to the status of our proposal. 2014 - 2017 4. Brensil Roll - who received confidential company documents prior to the May 2017 elections - only to be told the documents cannot be located. 2017 - Present 5. Frankie Campbell - who also received copies of the Vehicle Inspection Proposal as the New Minister of Transport, but I am yet to receive an acknowledgement of receipt of the proposal or a response. 2017 - Present 6. Ms Sandra Knowles - Board Member (Transport) who received copies of the Inspection Proposal - Pending receipt of a response, do not return calls or messages. 2017 - Present
But what I can hear is this Government's efforts to find remedies to problems in foreign lands when a comprehensive fix to a list of roadworthiness problems, exist - and its totally BAHAMIAN AND IT COMES WITH JOBS! 300 PLUS of THEM
Why are we being ignored?
http://tribune242.com/users/photos/2018…
ohdrap4 6 years, 10 months ago
I can think of 2 reasons:
biblical reason: no man is a prophet in his own land.
someone has probably already been hand picked to receive a percentage of the inspection fee in the bahmas so that the car can pass though customs, then charge you vat on it.
I doubt the tribune can do anything for you. but the reason they do not quote you is because you are neither a failed politician nor bankrupt award winner.
Franklyn 6 years, 10 months ago
...more like selective empowerment or as one of the person's named said to me "government is continuous" I took that to mean; the policies of the former "Christie Administration" will continue. So long time supporters and grassroots warriors who beared most of the abuse, changing government expecting a change ...well, they got a change - a change of name ...while the corrupt system of governance in the Bahamas continues.
ohdrap4 6 years, 10 months ago
For what it is worth, i once worked for a company which owner wished to become rich by receiving advantages from the govt.
They fawned over the ruling FNM in the 1990s, but , other than some facilitations which were under the law, the doors of ministers and high ranking civil servants were suddenly closed. If the boss chanced to meet the politicians, they would say to send the stuff again and they would answer without delay.
Then the boss decided to take the chances with the plp making some good campaign contributions. In 2002, they were elated, surely now they would get their contracts.
It was not even a month after the elections and the doors were closed again. A similar project would later be implemented by plp cronies.
Both projects are now in the dustbin of history.
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